AUD/USD one-month 25 delta risk reversals (AUD1MRR), a gauge of puts to calls on the Australian currency, is currently trading at -0.60, the highest level since April 18, 2018, indicating fading demand for the AUD bearish bets (put options).
While the negative number indicates the premium pair for puts (demand) is still higher than that for calls.
The premium for puts, however, is at one-year lows and has dropped sharply in the last 20 days. This is evident from AUD1MRR’s rise from -0.9 (March 29 low) to the current level of -0.60.
The data indicates the AUD/USD could soon find acceptance above the 200-day moving average (MA), currently at 0.7194. The moving average has proved a tough nut to crack in the last 24 hours.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.